ECN Chapter 4
- Substitutes: if an increase in the price of one causes an increase in
demand for the other. Ex:
- If the y axis changes, quantity demand changes but demand curve
does not shift it’s a movement along.
- When demand goes up the demand curve shifts right
- When demand goes down the demand curve shifts left
- Expectations affect consumers buying decisions
- Tastes: Anything that causes a shift in tastes toward a good will
increase demand for that good
and shift its D curve to the right.
- Quantity supplied: of any good is the amount that sellers are
willing and able to sell.
- Law of Supply: The claim that the quantity supplied of a good
rises when the price of good rises, other things equa